Seasonality is problematic this year, likely due to the elections and politics around another COVID stimulus package. Still, time and history work for the strategy.
This week we talk about IPOs, Brexit and its effect on the GBP and markets, and the volaitility increase in the QQQS.
While bonds yields are hopelessly low, managers look for yield in stocks. Seasonality is turning bullish and market breadth is increasing.
As US elections approach we take a look at how election results move markets. We go through 10 lessons for all investors who are nervous going into the elections. History shows that there is nothing to be afraid of except uncertainty. Markets look bullish for October based on the AAII Investors Sentiment Survey and several Read more ➝
After five straight monthly gains, the US stock market finally came under pressure in September. The NASDAQ hit the ‘correction level’ of a 10% slide. Markets have rebounded, but October is usually weak. Patience is needed for entry into the seasonally positive part of the year.
With such a highly divisive election coming in November, a ‘VIX bubble’ has appeared. This is distorting how traders are reacting to the current market sell off.
We take a first glance at Bank of America research on which sectors will benefit under the four possible election results in the US. Meanwhile, US sector rotation is visible. Investors are moving from technology to industrials. Emerging markets are holding up, also. Gold and Silver are flat. Barron’s highlights the possibility of Japan and Read more ➝
Next week starts the Jewish holidays and the relevant market adage, “Sell on Rosh Hashanah and buy on Yom Kippur” comes into play. Historically, the SPX was down roughly 58% of the time during this period.
October can invoke fear into investors as it is usually a weak month. However, October often marks the lows for the year. Stay diligent!
The key to a successful investment strategies involve three main elements: what to buy, when to buy, and how much to buy. We will look at each of these elements individually as we focus on creating successful investment strategies.